Correlation Between CXApp and Autodesk

Can any of the company-specific risk be diversified away by investing in both CXApp and Autodesk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CXApp and Autodesk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CXApp Inc and Autodesk, you can compare the effects of market volatilities on CXApp and Autodesk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CXApp with a short position of Autodesk. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Autodesk.

Diversification Opportunities for CXApp and Autodesk

-0.69

Correlation Coefficient

CXApp  Autodesk

Excellent diversification

The 3 months correlation between CXApp and Autodesk is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Autodesk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autodesk and CXApp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CXApp Inc are associated (or correlated) with Autodesk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autodesk has no effect on the direction of CXApp i.e., CXApp and Autodesk go up and down completely randomly.

Pair Corralation between CXApp and Autodesk

Given the investment horizon of 90 days CXApp Inc is expected to under-perform the Autodesk. In addition to that, CXApp is 2.67 times more volatile than Autodesk. It trades about -0.03 of its total potential returns per unit of risk. Autodesk is currently generating about 0.15 per unit of volatility. If you would invest  25,579  in Autodesk on September 4, 2024 and sell it today you would earn a total of  4,317  from holding Autodesk or generate 16.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

CXApp Inc  vs.  Autodesk

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Autodesk

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Autodesk are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Autodesk disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and Autodesk

The main advantage of trading using opposite CXApp and Autodesk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, Autodesk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Autodesk will offset losses from the drop in Autodesk's long position.

The idea behind CXApp Inc and Autodesk pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.